Southend Market Segmentation
Project
How We Did It !
Purpose
• To explain how the Sport Industry Research
Centre at SHU approached the catchment area
analysis of Southend's Leisure Facilities.
– The Concept
– The Tools Needed - Data Resources
– How to Use Them
• Local Authority Level - Simple Modelling Techniques
• LSOA / Ward and Catchment Area Analysis
• Linking to Active Places Power
The Concept
• Sport England working with Ipsos Mori have developed
19 market segmentation profiles for the adult
population (18+) which explains participation in Sport
and active recreation.
• The segments have been developed using data from
Active People Survey (1) , Taking Part and additional
socio economic data from Experian.
• Because the data has used Mosaic techniques it is
possible to assign a sport market segmentation profile to
every adult in every household in the UK.
The Concept
• In very simple terms if you know the market
segmentation profile of a particular area you can
develop an understanding of your local market in
terms of:– A breakdown of the numbers in each segment.
– Motivations, attitudes and behaviours in relation to
participation in sport
– Socio - economic profile
– Activities likely to attract particular segments
– Insights into how to "communicate" with them in
marketing terms
The Concept
• Understanding your local market segmentation
profile enables you to undertake better targeting
and "positioning" of your services
• Understanding the segments in terms of
motivations, attitudes, and potential barriers
gives you powerful information to develop a
better marketing mix.
The 19 Segments - National Profile
Segment Name
Forename (s)
%
Population
%
Male
%
Female
In million
Competitive Male Urbanites
A01
Ben
6.4
13.3
0
2,521
Sports Team Drinkers
A02
Jamie
5.4
11.1
0
2,127
Fitness Class Friends
A03
Chloe
6.9
0
13.4
2,717
Supportive Singles
A04
Leanne
4.7
0
9.1
1,851
Career Focussed Females
B05
Helena
5
0
9.7
1,969
Settling Down Males
B06
Tim
9.4
19.3
0
3,702
Stay at Home Mums
B07
Alison
4.6
0
8.9
1,812
Middle England Mums
B08
Jackie
4
0
7.7
1,575
Pub League Team Mates
B09
Kev
5.8
12
0
2,284
Stretched Single Mums
B10
Paula
3.8
0
7.4
1,497
Comfortable Mid-Life Males
C11
Philip
7.8
16
0
3,072
Empty Nest Career Ladies
C12
Elaine
5.3
0
10.2
2,087
Early Retirement Couples
C13
Roger & Joy
6.2
6.2
6.3
2,442
Older Working Women
C14
Brenda
4
0
7.6
1,575
Local ‘Old Boys’
C15
Terry
3.4
7
0
1,339
Later Life Ladies
C16
Norma
2
0
3.6
788
Comfortable Retired Couples
D17
Ralph & Phyllis
3.7
5
2.4
1,457
Twilight Year Gents
D18
Frank
3.5
7.1
0
1,378
Retirement Home Singles
D19
Elsie & Arnold
8.3
2.5
13.8
3,269
6
The Basic Tools Needed
•
•
•
•
•
The 19 Market Segmentation Pen Portraits
– Can be downloaded from the Sport England Web Site
– Provide an overview of the key characteristics of each segment
– http://www.sportengland.org/research/market_segmentation.aspx
Your Local Profile at Local Authority Level
– Provides a breakdown of the % in each segment in your LA and
compares it to national and regional averages
http://www.sportengland.org/research/market_segmentation/geographical_b
reakdowns.aspx
The Index Tables
– Can be downloaded from the Sport England Web Site
– Provides the detailed data about each segment
http://www.sportengland.org/research/market_segmentation/our_market_se
gments/index_tables.aspx
Training Resources
• The Sport Industry Research Centre at SHU has
developed a number of training videos to support the use
of the Active People Diagnostic and Market
Segmentation data
• These can be found on the Sport England Website
http://www.sportengland.org/support__advice/local_gove
rnment/apd_training.aspx
• Modules 5 provides an introduction to Market
Segmentation and Module 6 takes you through the
techniques used in the Southend Case Study
Pen Portraits - Example
9
Pen Portraits
10
Pen Portraits
11
Local Profiles - Southend Example with Additional Analysis
• The largest segment group is 19
(Elsie and Arnold) at 9.5% and is
above the national and regional
average
•Southend also has a greater
proportion of Early retired couples
(Roger and Joy ) than the national
average 7.6% which is 1.48%
above average
•60.6 % of Southend's adults
population belong to segments
which are more likely than average
to participate and 39 .4% to those
less like than average to participate
•Of this 39.4% less likely than
average to participate, 32.7%
comes from the 55 and 65+
segments
Index Table of Percentages
From Sport England Web Site
Index Table of Percentages
• For each segment it gives the % likely to have that
particular variable or attribute
• This is based on National data but the important point is
that Ben is a Ben wherever you are!
• You can use this data with your own local profile to
model local demand . For example from the index
tables we know that 33.4% of Bens like to play football if you apply this to your local profile for Be you have a
simple demand model.
• Southend - Bens = 6% of adult population of 124082
(7445)
• Ben's interested in Football across Southend (33.4%) =
2489
Simple Analysis at Local Authority Level
• Just using your local authority profile in combination with the index
table (of percentages) it is easy to do some simple modelling
• In the next slides we illustrate how we did this for Southend at a
authority wide level
• We created a spreadsheet which converts the Southend market
segmentation profile into real numbers for each segment. Then we
applied the AP data from the index table which breaks down
participation by zero days, 1 to 11 days and 12 days (in a 4 week
period).
• We also added the data from the index table which gives the % who
"would like to do more sport."
• The purpose of this was to try and develop a better understanding of
where future growth in participation might come from and which
segments should be targeted.
• This template is available for you to use with your own local
authority profile
•This illustrates that there are 36903 people doing something and
58344 people who would like to do more.
•The table to the right illustrates the segments which are significant in
size and would seem to have potential for growth (the "Soft
Underbelly")
•Of the segments which are less likely to participate at the moment
Jamie and Kev are the largest male segments, Paula and Leanne are
the largest female groups and Roger and Joy as a mixed gender
segment
•Philip and Elaine are included for consideration they are higher
participating segments, but the size of this group and the % wanting
to more make them a target for further market penetration.
•Whilst Elsie and Arnold are the largest group in absolute numbers they will provide least return on investment in terms of growth
potential.
Modelling Swimming Demand
•
•
•
In this table we have used the same method - but using the data from the index table on swimming
This illustrates actual participation in swimming in the 4 weeks prior to the AP Survey and the % in each segment
likely to take part in aquatic activities, in order to help model demand for swimming across the authority
In terms of our "potential for growth" segments, swimming is like to be more attractive to Leanne, Paula and
Elaine. Whilst the participation rate for swimming is less for Roger and Joy - the size of this segment makes it
attractive.
Modelling Demand for Other Sports
•In this example we have modelled demand for the key sports offered by Southend Tennis and Leisure
Centre
•In this example we have treated the catchment as the whole authority as STLC is a major facility
•Having identified the target markets for growth we have then used the Market Segmentation Pen
Portraits to extract key messages for the facility (next slide)
Southend Tennis and Leisure Centre
Segment
Sports most likely to be of Interest
(Related to Centre)
Key Marketing Mix Issues
Jamie
Football, Martial Arts
Cost, social approach (e.g. 5 a side leagues -Power league)
Leanne
Swimming gym aerobics classes dance based
exercise body pump,
Cost of admission and help with childcare (not for all Leanne's).
Key Motivations keeping fit and losing weight
Kev
Football, Boxing , Martial Arts
Cost, Better facilities , again football leagues, Lads and Dads
activities,
Paula
Swimming Aerobics
Key motivation is to take children but is price sensitive
Philip (46 - 55)
Football Racket Sports Gym - Likely to be a
significant number of Philips already using the centre,
but there are lot of Philips in Southend and a
significant proportion want to do more . Opportunity
for further market penetration but you are probably
competing with the David Lloyd Club
Time is a factor, but also will be a key purchaser of children's
activities. More likely to take part in organised competitions and
likes a "club" approach.
Brenda (46 - 55)
Swimming, Aerobics, Dance Exercise
Similar mix to Paula, Likely to walk to centre (Low Car ownership)
Cost is an Issue, likely to take grandchildren
Elaine (46 - 55)
Swimming Gym Aqua Yoga , Pilates - More likely to
be a member of a health and Fitness club. Again key
market for David Lloyd
Losing Weight , Keeping Fit
Roger and Joy
(56 - 65)
Swimming Bowls Aqua Walking
Time is a factor and will be doing other things even though work is
reducing - committees and voluntary work !
More likely to be a member of a sports club, motivated by keeping
fit. Again target market for David Lloyd
Terry (56 - 65)
A difficult segment ! - more into fishing, darts,
snooker (low intensity social activity) Not participated
from a young age and therefore not interested in the
sports on offer. Not health focused
Cost and someone to go with - exercise referral activities may be a
way into to this group - Physical activity based interventions
Next Steps
• So far we have illustrated how we have used the local authority level
market segmentation data to undertake some simple demand
modelling
• It is possible using the MS Raw Data File to drill down to smaller
areas of geography to do the same modelling. The Raw Data file is
available on request from Sport England and comes in a CSV format
which can be imported into geographical information systems. This
enables you to undertake detailed mapping of your markets for sport
and to also combine it with other GIS based data.
• At the simplest level it can be imported into an Excel Spreadsheet to
enable you to quantify market demand in selected LSOA / MSOA
areas. It is possible to extend this to wards if you match your local
ward geography to the LSOA's (most LA's have staff able to do this)
This is a screen shot of the Southend raw data - imported into excel with the LSOA's aligned to
Wards. Using Filters it is easy then to select wards or LSOA's to develop a more local segment
count. This can then be combined with the index table to do local modelling as before. In the
absence of GIS you can select specific LSOA or Wards as "catchment areas"
In this example we have applied a filter to the Paula column to display the Top 10 segment counts
by Ward and Lower Super Output Area. This gives a focus for projects aimed at reaching Paula
giving potential location and supporting communication methods such as direct mail.
Radial Catchment Analysis
•
•
•
•
•
For the Southend analysis we used GIS Software "Map Info" in combination
with the Southend Raw Data file to determine the segment profile within a 2
mile radius.
It is possible to do this with drive time catchments if local planners are
able to make the GIS road network data available.
On the next slide we illustrate the individual MS profiles of the different
facilities in Southend
For each facility we then provided modelled demand for the core activities
offered and used information from the MS profiles to inform marketing mix
strategies
We have also used the data from the index table which informs us of the
segments most likely to have children and those parents interested in taking
children to do sport. These segments are a key targets for marketing
children's services.
Distribution of Growth Potential by Facility
•
•
This slide illustrates how this growth potential is distributed across the 4 facilities and starts to introduce local
issues. Across Southend 60.6% of the adult populations belong to segments which are more likely than average
to participate .
In the Belfair's catchment this increases to 65%, Chase has 62% from the higher participating segments and
Shoeburyness 57 % from the higher participating groups.
Children's Activities In Southend - Target the Parents !
•
This slide just quantifies the size of
the market for children's activities
based on the fact that parent's are
the customer and children are the
consumers !
•
Clearly Tim, Alison, Jackie and Philip
segments are important purchasers
of children's activities.
•
Using the LSOA / Ward data file it is
possible to directly market to these
parents. Many will be time pressured
but may prioritise their children's
activities above their own.
•
Many of these segments will be your
existing customers
•
Segments to be targeted for growth
are also those for whom activities for
children will be important (Kev and
Paula)
Examples of the Analysis at
Selected Facilities
Note - Those segments highlighted as Potential for Growth in the following slides are those
identified as being strategically significant across Southend as a whole
.
Belfairs Swim Centre - Segment Count
2 Mile Radius
Potential for Growth
• These area the segments identified earlier because they are less likely
than average to participate regularly (three times a week for 30 minutes) or
they are the segments with a higher % "wanting to do more sport"
Belfairs Swim Centre - Catchment Profile and Swimming
Participation
Potential for Growth
•Highlighted again these are the segments which generally provide most potential for growth across Southend. In this
swimming example however some of the target segments are small in the Belfair's catchment in comparison to others. This
is the case for Leanne and Paula in relation to other female segments in their age group.
• However the Leanne and Paula segments are participating less , a higher proportion of both will be on Zero days and a
significant proportion of them want to do more.
•Jamie and Kev are also targeted segments for growth across Southend but may be less likely to choose swimming
Belfairs Swim Centre - Segments Ranked by Swimming Participation
•
•
•
This table ranks the segments by participation in swimming in the previous 4 weeks, illustrating the
importance of the female segments of Alison , Chloe , Jackie , Helena and Elaine as likely current users
and the potential to develop the Leanne and Paula markets. Getting the offer right for women is crucial .
Tim is the biggest male segment - he offers less growth potential for swimming, but will be interested in
children's activities
Alison and Jackie, will be key purchaser s and influencers for children's activities. Potential for Growth
The Chase Leisure Centre
Catchment Area Analysis
Potential for
Growth
Chase Leisure Centre Size of segments - Rank
Order
Potential for
Growth
Chase Leisure Centre - Gym Participation
Rank Order by Segment Size
•
Tim, Helena, Ben and Chloe
top for going to the Gym
•
These segments are also
target markets for private
sector, (also Philip)
•
David Lloyd in St Laurence
Ward and Fitness First in
Victoria Ward
•
Jamie and Leanne are
sizeable markets with
potential for growth
Shoeburyness Leisure Centre
Shoeburyness Sports Centre
KF
NA
KF
NB
KF
NC
KF
NG
00KFNA
00KFNB
00KFNC
00KFNG
2 Mile
Radius
Shoeburyness
Southchurch
Thorpe
West Shoebury
Ben
Jamie Chloe Leanne Helena Tim
Alison Jackie Kev
Paula Philip Elaine
337
533
325
474
419
623
322
391
582
467
662
443
402
257
447
255
275
443
236
165
314
381
445
416
561
124
685
115
410
848
415
175
25
6
624
500
389
272
454
197
269
573
395
220
421
464
539
430
Ralph
Roger
&
Elsie &
& Joy Brenda Terry Norma Phyllis Frank Arnold
452
394
301
194
84
237
619
440
252
226
112
611
250
694
693
33
18
24
999
197
439
451
283
251
148
412
235
560
28,334
1,689
1,186
1,911
1,041
1,373
2,487
1,368
951
1,342
1,318
2,270
1,789
2,036
962
796
478
2,106
919
2,312
Shoeburyness %
6.0%
4.2%
6.7%
3.7%
4.8%
8.8%
4.8%
3.4%
4.7%
4.7%
8.0%
6.3%
7.2%
3.4%
2.8%
1.7%
7.4%
3.2%
8.2%
Southend %
6.0%
6.1%
5.5%
4.8%
6.2%
8.4%
4.5%
4.0%
4.2%
2.5%
8.6%
6.4%
7.6%
3.2%
2.6%
1.7%
3.5%
4.6%
9.5%
Shoeburyness has a lower proportion of the
higher participating segments (57 %) compared
to Southend as a whole (60.6%)
Shoeburyness Leisure Centre
Size of Segments - Rank Order
•
High participating Tim is the
largest group
•
There are a greater proportion of
Kev and Paula's than the
Southend average (target for
growth)
•
Roger and Joy are a significant
group and are targeted for
growth potential
•
Philip and Elaine again are
significant and have potential for
further market penetration
Potential for Growth
Shoeburyness - Demand for Key Activities
Activities for 65 +
• We also did some specific analysis of the 65 + market using the
Southend Local Authority Profile
• This is "Super Group D" (Segments 17 to 19 in the Market
Segmentation work)
• 21,969 in Total
• Ralph and Phyllis - 4369 (most active in super group)
• Frank - 5,751
• Elsie and Arnold - 11,849 (least active ) and the largest" zero
days group" across all segments
Participation Data (APS 1)
Top 20 LSOA's for Super Group D
•Here we have used the Raw Data
File in Excel and "sorted" the top 20
LSOA in terms of numbers of adults
in Super Group D . This provides
the LSOA's which should be a
geographical focus for reaching
older people
•Using the market segmentation
profile we have again provided the
key issues
Key Issues for Super Group D
• These are the segments with the least potential for
growth in terms of NI 8 (only 16 % want to do more)
• But they are the largest zero days market - which may
be more important to target for physical activity
interventions
• The facility with the largest number of SGD within a 2
mile radius is Westcliffe (14,413) and Warriors (11330)
• The facility with the smallest number of SGD within 2
miles is Shoeburyness (5337)
• Southend Tennis and Leisure Centre has 6560 SGD
within 2 Miles.
• The closure of Warriors and the redevelopment at STLC
may have an impact on local access for SGD.
Marketing Issues for 65+
Segments
Ralph and Phyllis
•
Most popular activities
– Walking
– Swimming
– Golf
– Bowls
• Comfortably retired, likely to be sports
and social club members and are
volunteers
• Live in Thorpe, Southchurch, West Leigh
and Chalkwell
Frank
• Again walking, swimming, bowls and golf
• Participates less then Ralph and Phyllis
• Lives in Belfairs. Prittlewell and St
Laurence
Elsie and Arnold
• Most sedentary group
• Mostly single (widows and
widowers) and predominantly
female
• Live in Belfairs, Prittlewell,
Chalkwell, St Laurence,
Southchurch (many in sheltered
accommodation)
• Those who are active - walking,
bowls, dancing - light intensity.
• Safer neighbourhoods - big issue
especially for walking
Further Analysis Using Active
Places Power
• Sport England's Active Places Power is an online tool available to
Local Authorities It is designed to assist in investment decisions and
the development of infrastructure improvement strategies for sport.
• We used it to determine:– the number of facilities (of different types) available in
comparison to national and regional levels of provision
– Facility supply v demand in Southend. Demand is determined by
participation and socio economic data within the APP model.
– Issues relating to Supply and Demand given our analysis of
Southend's Market Segmentation Profile. In other words do we
have the facilities to provide the activities that will be needed to
grow participation in the targeted groups.
Example Active Places - Provision Indices
Supply v Demand
Active Places Analysis for
Southend
Key Points:
•
Demand as measured within Active Places Power reflects your local socio - economic profile.
Therefore under provision is real and is not a shortfall against a "standard" such as "per head of
population"
Findings
•
Under provision of golf;
•
Slight under provision of indoor bowls, which is reinforced by demand and supply balance data;
•
Slight under provision of health and fitness facilities;
•
Over provision of indoor tennis facilities;
•
Sport halls and swimming pools more or less as expected and demand appears to be met
comfortably by supply; and
•
Under provision of STPs.
•
Overall for the most part the challenge facing the borough is one of programming rather than the
availability of mainstream spaces such as sports halls and pools.
•
In terms of potential for growth - we have already noted the attractiveness of football to
segments such as Jamie and Kev which underlines the importance of STP provision
•
Golf, bowls and health and fitness are activities which appeal to the older segments
Active Places MS Data and the
Marketing Mix Issues
Some concluding thoughts and observations :• In Southend, there is sufficient core provision (sports halls and swimming
pools. It is important to reflect on the marketing mix of existing provision
and using the segment profiles to help understand customer needs and
wants to break down barriers to participation. Potential for new products at
existing facilities.
• Product - swimming, health and fitness and football are the most important
activities for the groups targeted for growth. Childcare or family friendly
activity is a major enabler.
• Price - Are the current pricing policies effective in relation to the target
segments as cost is a major barrier to Jamie, Leanne, Paula and Kev ?
• Place / Programming -There is a shortfall in synthetic turf pitch provision
which could be a factor in improving the football offer. We have identified a
shortfall for golf and indoor bowls which will appeal to older segments.
Programming of facilities does it reflect local needs - balance and timing.
Active Places MS Data and the
Marketing Mix Issues
• Promotion - Use the catchment data and MS data to help reach
target segments more effectively e.g. direct mail. Developing more
effective marketing communications in relation to segments targeted
for growth
• People - Do we have the best people in place to work with some of
our target groups (coaches, leaders, volunteers) ?
• Processes - How easy is it for people to engage with the service booking procedures, purchasing discount cards etc.
• Physical Evidence - Do we meet customer expectations. Service
quality issues are important for growth and retention of users.
Next Steps
• Local authority level analysis - you can now get started !
• Detailed analysis by selected MSOA/ LSOA Individual
Local authorities in the East Region must request the
raw data file from Sport England and complete the
licence agreement
• Remember when you get the raw data file (CSV format as a minimum it needs transferring into excel and further
work to link ward geography to the LSOA's
• Importing into GIS makes the data even more powerful
Sport England Market
Segmentation Update
• Sport England are in the process of updating the market
segmentation material including adding greater detail to
the segments and this will be available in the autumn of
2010
• In the meantime the existing data remains current and
live on the website.
• http://www.sportengland.org/research/market_segmentat
ion.aspx
• Don't forget the training resources on the Sport England
web site
http://www.sportengland.org/support__advice/local_gove
rnment/apd_training.aspx